SAIL, JSW Steel and Essar Steel filed a petition for imposition of safeguard duty on HRC amid mounting pressure of increasing imports.
With news of safeguard duty doing the rounds in the Indian steel market, along with China’s currency devaluation and strengthening of US dollar, Indian HRC manufacturers are holding their offers in domestic market. As per trade sources, 2.5 mm (IS 2062) grade HRC are being offered at INR 32,500/MT (ex-Mumbai), INR 33,000/MT (ex-Delhi) and INR 33,000/MT (ex-Chennai). All prices include excise of 12.5%.
India’s three major steel giants, SAIL, JSW Steel and Essar Steel which together contribute to more than 50% of India’s total HRC production, have filed a petition for imposition of safeguard duty on HRC.
Safeguard duty can be levied only if more than 50% producers are affected by cheaper imports. If directorate general of safeguards in its investigation finds out ‘serious injury’ to the steel sector, it may impose provisional safeguard duty which will be valid for 200 days based on provisional investigations. If after the final investigations, it is found that no serious injury had been caused, the amount of provisional duty imposed will be refunded.
China’s currency devaluation resulted in strengthening of US dollar against other currencies, making import costlier. Also, the recent increase in import duty of 2.5% on flat steel has made importers more cautious.
Current offers for commercial grade (SS400) from China are assessed at USD 325-330/MT CFR India for September shipments, whereas offers from Japan/Korea are at around USD 375/MT.
Source: SteelMint Research
Leave a Reply